Why Minds Like Soros, Shiller Fear Wealth Destruction

A wide range of luminaries from hedge fund legend George Soros to Yale economist Robert Shiller see grave economic danger ahead.

MarketWatch.com put together a list of their bearish thoughts, and here is what three of them had to say.

Soros says we’ve just finished 25 years of excess.

“The system is broken,” he wrote in his book “The New Paradigm for Financial Markets.”

Soros said, “The current crisis marks the end of an era of credit expansion based on the dollar as the international reserve currency. We're now in a period of wealth destruction. It is going to be very hard to preserve your wealth in these circumstances."

Shiller says the bubble cycle isn’t over.

“Bubbles are primarily social phenomena,” he wrote in The Atlantic.

“Until we understand and address the psychology that fuels them, they're going to keep forming. We recently lived through two epidemics of excessive financial optimism, and we are close to a third episode.”

A wide range of luminaries from hedge fund legend George Soros to Yale economist Robert Shiller see grave economic danger ahead.
MarketWatch.com put together a list of their bearish thoughts, and here is what three of them had to say.
Soros says we ve just finished 25...